Indiana revokes license, issues fine in All Star Insurance case

Former South Bend firmÂ?s customers lost more than $80,000, state says

Former South Bend firmÂ?s customers lost more than $80,000, state says

February 08, 2007|By JEFF PARROTT Tribune Staff Writer

A former South Bend insurance agent could end up owing customers and the state more than $365,000, state insurance regulators announced Thursday.

In the wake of that news, former All Star Insurance owner Daneile FrydrychÂ?s customers say they are left wondering two things Â? whether they will ever again see their money, and why she has not been charged with any crimes.

At a Dec. 28 hearing in South Bend, Indiana Department of Insurance officials said Frydrych, who operated an office at Sample Street and Mayflower Road, had failed to forward more than 100 customersÂ? premium money to insurers. Frydrych instead spent their money on everything from Las Vegas gambling trips to clothing and "adult entertainment" items, state investigators have said.

Indiana Insurance Commissioner Jim Atterholt issued a final order Thursday in the case, permanently revoking FrydrychÂ?s license to sell insurance and tallying customersÂ? loss claims. The losses exceed $80,000, and the department has fined Frydrych $285,000.

The agency will now forward the case to Indiana Attorney General Steve CarterÂ?s office for collection, said Nick Mann, investigations chief at the department of insurance.

"This brings some amount of closure to the case," Mann said. "I know everyone wants their money back. WeÂ?ve tried to be realistic from the get-go that that might not happen, and I think people are aware of that."

St. Joseph County Prosecutor Michael Dvorak has yet to charge Frydrych with a crime.

For more of this story, see FridayÂ?s edition of the South Bend Tribune.